UK banks’ CVA charges ballooned by £8bn in volatile Q3
Bank of England figures show capital requirements at highest since early pandemic readings
UK banks’ capital charges to cover credit valuation adjustments (CVAs) surged 10% in the third quarter to their highest level since Q3 2020, data from the Bank of England (BoE) shows.
The increase coincided with former prime minister Liz Truss’s bungled tax plan, which sent UK assets tumbling following its announcement on September 23. Aggregate risk-weighted assets (RWAs) for CVA at the country’s lenders reached £87 billion ($105.2 billion) at end-September, compounding first-half of the year
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